Nosam Ltd Has Just Raised $100 Million by an Issue

question 48

Multiple Choice

Nosam Ltd has just raised $100 million by an issue of 5 million converting preference shares.If each CPS converts into 20 ordinary shares on conversion,calculate the value of the ordinary shares received in exchange for each converting preference share.Assume the conversion discount is 5 per cent.

• A)$20.00
• B)$21.05
• C)$105.20
• D)$101.00

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Definitions:

Mortgage Note

A legal document that obligates a borrower to repay a loan used to purchase a property, outlining the terms of the loan, interest rate, repayment schedule, and enforcement rights.

Installment Payments

Payments made regularly over time to settle a debt or purchase, dividing the total cost into smaller amounts.

Principal Balance

The outstanding amount of a loan or mortgage that remains to be paid, excluding interest.

Mortgage Note Payable

A liability in the form of a written promise to repay a specified amount of money, along with interest, secured by a mortgage on property.